![]() ![]() Everyone with budgeting authority needs to prepare a report even if they’re not attending the session. Schedule your hands-on strategic alignment session.Ĭonfirm the date. Your IT team needs to be able to make time available for individual meetings. Your risk assessment findings and proposed solutions are critical pieces of your IT budget.Įach person with budget authority and expects new technology needs should loop in IT as early as possible. Include your risk assessment steering committee.Ĭybersecurity and other security management activities require funding - possibly more than you expect. Each department lead will want to schedule one or more IT budgeting sessions with their team to discuss everyone’s ideas and focus on goals. In Leapfrog’s experience, the process works best when all department leads are included in planning and are able to advocate for what their teams need to meet the company’s strategic goals. Include each person with budget authority. Given inflation, supply chain challenges, and the other differences noted above, 1Q2022 would have been a good time to start your IT budgeting process. Typically, we have recommended starting six months before the budget is due - but 2023 is not typical. ![]() Let people know what’s expected and when. Here’s a breakdown of what happens during each step: Step 1: Schedule and invite It also enables your IT department or partner to weigh in early so they can provide input and ultimately design the most affordable solutions to integrate with your existing technology. This process gives everyone enough time and enables your team to work together to focus on your business goals (instead of last year’s spending). Here’s the high-level framework that can help you hit the mark each year, regardless of current circumstances: Yet, after having participated in hundreds of IT budgeting processes and seeing how those budgets play out, there are clear best practices any organization can follow, yours included. Our clients differ in size, industry, and growth objectives. We’ve built budgets during booms and recessions, periods of massive technological transformation, COVID-19 - every year for more than two decades. ![]() Why does the 5-step process that we recommend work?įor 24 years, Leapfrog has been helping clients develop successful IT budgets. Infrastructure that needs to be modernized to leverage digital transformation.Massive cyber risk that needs to be mitigated.Inflation, supply chain volatility, and continuing adjustments due to the pandemic.Cloud migration and the shift from CAPEX to OPEX.There are enough differences that we wrote a guide about them, Making Sense of What’s Different for IT Budgeting in 2023. What’s different about IT budgeting for 2023? This is the perfect year to take a fresh look at your IT budgeting process, which starts sooner, requires a different mindset, and needs to be more flexible. In 2023, it’s become clear that in a post-COVID-19 world, we need a new normal for IT budgeting, too. And in 20, companies focused on shoring up digital transformations that had been implemented on the fly, returning to the office, and catching up with back-burner items, including paying off technical debt - all while continuing to invest in growth and initiatives to stay competitive. In 2020, budgets were thrown off by the pandemic, of course. And it will be even less effective for 2023 planning, because the last few years have been anomalies. Although common, we’ve seen that’s not the best approach when our clients want to focus on their business goals. Most companies start annual IT budgeting by looking at last year’s budget and working from there. But how can your IT budget-planning process set you up for success? The nonpartisan Legislative Analyst’s Office highlights some key differences.Developing an IT budget that hits the mark paves the way for a year of strategic wins. Other areas also remain to be worked out. The Democrats’ $312 billion spending plan largely aligns with Newsom’s on avoiding major cuts to ongoing programs, increasing core funding for some, including schools, public universities, welfare payments and health coverage and expanding some others, including $250 million more for flood protectionīut the plan differs from Newsom in some significant respects, including by offering a temporary lifeline to struggling public transit agencies. This budget was published June 11, representing agreement between the Democratic caucuses of both chambers, who can use their supermajorities to pass budgets without any Republican votes. This is typically the stage, after the May revision, when the Legislature makes decisions on major programs such as education, corrections, and health and human services. Before the Legislature reaches an agreement with the governor, the Assembly and Senate must decide what to present. ![]()
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